Call Option | Trade Up (Business Opportunities - Money Making)

Item ID 129434896 in Category: Business Opportunities - Money Making

Call Option | Trade Up

Url : http://www.binarytradingglobal.com/call-option/
Call option is an agreement that gives an investor the right, but not the obligation, to buy a stock, bond, commodity or other instrument at a specified price within a specific time period.

A call option is an option contract in which the holder has the right to buy a specified quantity of a security at a specified price within a fixed period of time.

For the writer of a call option, it represents an obligation to sell the underlying security at the strike price if the option is exercised. The call option writer is paid a premium for taking on the risk associated with the obligation.

Call option often simply labeled a "call", is a financial contract between two parties, the buyer and the seller of this type of option. The buyer of the call option has the right, but not the obligation, to buy an agreed quantity of a particular commodity or financial instrument from the seller of the option at a certain time for a certain price. The seller is obligated to sell the commodity or financial instrument to the buyer if the buyer so decides. The buyer pays a fee for this right. The term "call" comes from the fact that the owner has the right to "call the stock away" from the seller.